She was paying herself extra money. She later said, she had an adult son who needed help. The company owner had at times given her extra pay, as she conducted personal errands. Cleverly, she paid herself bonuses she wasn’t due, at the same time bonuses were paid to the sales team. She was the office manager and had complete control over the payroll entries.
The company owner met with a certified fraud examiner to perform the investigation and conduct the interview of his long-time employee. Before the question was asked, the company owner declared, “I’m not having an affair with her. We’ve never been intimate. In fact, I’ve never given so much to someone I’m not sleeping with.” While the owner’s statement may sound crass, it’s actually an area important to explore and one the fraud examiner had planned on addressing.
A group of Atlanta private investigators who are also certified fraud examiners, speaks to business groups on the importance of internal fraud prevention. One particular investigator gets candid and talks about the importance of leadership integrity in the workplace. He subtly but clearly says, “If you compromise your integrity, either through a workplace affair or unethical business practices, it will be an inroad for your employees to steal from you.” He goes on to explain that he does question leadership about any improprieties and that it is paramount to know, prior to performing an investigation. “Knowing if there has been misconduct on the part of management, at times equals rationalization on part of the offending employee. Or, it could be something as simple as a broken promise, which propels an employee to commit the fraud.”
Our office manager falls in line with a long, sad list of offenders. The business owner in this case, did a good job of articulating and presenting documentation. It made the investigators job much easier. Many occupational frauds last around 18 months or so before they are detected. Payroll fraud, tends to last a bit longer. Fortunately, the business owner discovered the fraud relatively early or much more damage could have occurred.
When she was confronted by the investigator, her confession and cooperation came fairly easy; however, it did include some drama. Our office manager when explaining her reasons for stealing, included the aforementioned need for an adult son – but wait, there was more. She inferred that “harassment” had occurred. Understand, that while the investigator was not there to perform a harassment investigation, it was still important to gain information. The investigator listened carefully and the offending manager’s vague insinuation, did not appear convincing. Still, it was important to hear.
Further questioning by the investigator, combined with the investigator detecting likely deception on part of the office manager, indicated the late inning harassment reference was nothing more than a ploy. It’s been done before, to further rationalize the fraud and divert attention. As the business owner terminated her employment, she gathered her belongings, turned in her keys and departed the office.
A debriefing was held and follow up recommendations provided. Consider however, if harassment, either sexual or otherwise did occur. Often, the surprise revelation comes out during an offender’s confession. It goes something like this, “My boss was repeatedly making unwanted advances towards me and touching me. Although it was wrong, I would hate for his wife to find out.”
As you can imagine, if an executive or anyone in leadership, compromises their integrity, massive complications are in play. Does the embarrassment of a workplace affair, alter decisions on whether to pursue criminal prosecution? What about a mere suggestion? You bet it complicates the matter. For those who falsely claim harassment, that is often flushed out. If; however, leadership misconduct did take place, leverage for monetary recovery and other actions can be impeded. Thus, a warning to all – maintain your integrity.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.